Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Nature and significance of Management

Question:

Read the following text and answer the following question on the basis of the same.

Divisha is the branch manager of XYZ Handicrafts Pvt. Ltd of the only branch in Delhi. The company’s objective is to promote the sales of Indian handloom and handicraft products. It sells fabrics, furnishings, readymades and household items are made out of traditional Indian fabrics. Divisha decides quantities, variety, colour and texture of all the above items and then allocates resources for their purchase form different suppliers. She appoints a team of designers and crafts people in the company, who developed some prints for bed covers in bright colour on silk. Although the products looked very attractive and impressive, they were relatively expensive on the front of affordability for an average customer. Divisha suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control. Further, the company asked Divisha to plan the Diwali collection in the month of June itself in the current year. For this purpose, she has to ensure that there is adequate workforce and continuously monitor whether production is proceeding according to plans. Her marketing department also has to be briefed in time to prepare their promotional and advertising campaigns.

“ Divisha suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control.”

Which function of management is highlighted in this context?

Options:

Controlling

Staffing

Directing

Organising

Correct Answer:

Controlling

Explanation:

The correct answer is option 1- Controlling.

The function of management highlighted in this context is "Controlling."

In this scenario, Divisha is making adjustments to the product strategy by suggesting that silk bed covers be reserved for special occasions while offering cotton bed covers regularly. This decision aims to control costs and manage resources effectively. Controlling involves monitoring and adjusting activities to ensure that goals are met and performance aligns with the desired objectives. Divisha’s suggestion reflects a corrective action to ensure cost control and efficient resource use, which is a key aspect of the controlling function.

 

OTHER OPTIONS

  • Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan. Once a specific plan has been established for the accomplishment of an organisational goal, the organising function examines the activities and resources required to implement the plan.
  • Staffing simply stated, is finding the right people for the right job. A very important aspect of management is to make sure that the right people with the right qualifications are available at the right places and times to accomplish the goals of the organisation. This is also known as the human resource function and it involves activities such as recruitment, selection, placement and training of personnel.
  • Directing involves leading, influencing and motivating employees to perform the tasks assigned to them. This requires establishing an atmosphere that encourages employees to do their best. Motivation and leadership are two key components of direction. Directing also involves communicating effectively as well as supervising employees at work.